Changpeng Zhao (CZ), the co-founder and former CEO of Binance, wanted to return home to the UAE so badly that he was ready to pledge his entire stake in the largest cryptocurrency exchange Binance. CZ tried to pawn his $4.5 billion stake to get permission from a judge to temporarily travel to the United Arab Emirates (UAE). This is what the court stated in its recent documents.
Changpeng Zhao (CZ) is Not Allowed to Have Surgery
According to a document submitted to Judge Richard Jones, Zhao offered a stake in the US unit of Binance.US in exchange for permission to leave the United States. Experts estimate Changpeng Zhao’s stake value at $4.5 billion.
The report also clarifies that the purpose of the trip to the UAE was the surgical operation of a person close to him. Zhao wanted to go home for four weeks to be with a friend or family member. However, during a closed hearing in December, Judge Jones did not agree to such a request.
From Guilty Plea to Restricted Travel
Authorities first denied Zhao the opportunity to return to the UAE in early December last year. Prosecutors said CZ poses a “flight and failure to appear risk if he leaves the United States before his next court hearing.” Therefore, the judge left the former head of Binance in America until February 23 of this year, when the next meeting will take place.
On November 21, 2023, Binance and CZ agreed to resolve the conflict with the American authorities. As a result, they pleaded guilty to money laundering. The platform paid a fine of $4.3 billion, and Zhao paid $50 million and resigned from the post of CEO of the crypto exchange.
CZ also paid $175 million to remain free pending sentencing. He currently faces up to 18 months in prison. However, some believe that the final period could be 10 years.
Earlier it became known that in 2023, Binance lost more than 18% of the market. Last January the figure reached 60%, but by December it dropped below 50%.
Lawsuit History: Market Manipulation Post-FTX Collapse
The lawsuit was filed by a group of investors, led by Nir Lahav. He accuses Binance.US and Binance CEO Changpeng Zhao of violating federal and local laws, unfair competition and attempting to monopolize the cryptocurrency market. Considering that Binance has gained market share since the collapse of FTX, the accusations may well be justified.
We are talking about messages made by Zhao on Twitter (now X) in early November on the eve of the collapse of FTX. They accompanied the defendants’ decision to liquidate their investments in crypto exchange tokens. The plaintiff estimates that Binance owned up to 5% of all FTT tokens.
